RC Bhargava, chairman, Maruti Suzuki spoke to Malini Goyal on the significance of this move and what lay ahead for the company and the industryMalini Goyal | ET Bureau | December 14, 2015, 15:25 IST

For the Japanese car maker Suzuki Motors, India was once a small outpost. In the 1980s, it was a small market that churned out cheap cars that wouldn’t make the quality cut in Japan. The tables seem to have turned. Today, Indian arm Maruti Suzuki Ltd contributes 40% to the parent’s global sales. It hopes that by 2020, India’s largest car maker will contribute 60% to its global sales. Perhaps working towards that goal, for the first time Maruti will begin exporting vehicles to Japan. RC Bhargava, chairman, Maruti Suzuki spoke to Malini Goyal on the significance of this move and what lay ahead for the company and the industry.

Edited Excerpts:

How significant a step for Maruti is exporting to Japan?

This is a very important and significant step. We will be exporting our newly-launched Baleno (hatchback) to Japan. This is the first time we are exporting to Japan. This model is only being manufactured in India. In 2016, we expect to export 50,000 units of this model.

Is this a strategic step ahead for Maruti?

This is very much a strategic move for Maruti as well as India. If this car becomes successful in Japan, this could set a trend. While we haven’t talked about it yet, at a personal level I think this move could lead to Suzuki bringing its other models (to be manufactured and exported) to India. This is a good start.

Is the industry worried about the recent curbs on cars?

We are yet to discuss this internally. What has happened in Delhi could happen in other cities as well. There are companies with large investments in diesel vehicles.

After a two-year slowdown, is the industry out of the woods?

In 2015-16, I am hoping that the annual sales will grow at 6%. Next year (2016-17), I am hopeful that the industry might be able to see 8-9% growth, if GST (goods and services tax) goes through.